The US Federal Trade Commission (FTC) said that United States citizens reported losing $148 million to gift card fraud in the first nine months of 2021, a significant increase compared to last year.
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Nearly 40,000 consumers reported falling victim to fraud, in incidents where gift cards were the chosen payment method throughout the year.
The $148 million lost by the end of September 2021 is more than the total losses reported in 2020.
This type of fraud has been increasing every year for the last three years, now reaching alarming numbers, both in terms of the number of reports and the total amount of losses.
"Since 2018, both the number of consumers filing reports in which gift cards were the form of payment to fraudsters and the amount they reported lost have steadily increased," said .
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While Google Play, Apple , eBay, and Walmart gift cards remained popular choices for scammers, they have now turned their attention to Target gift cards, which are now their most popular choice.
"Most gift card scams begin with a phone call from someone impersonating a government official, such as the Social Security Administration or a business," the US government agency added.
«The caller may threaten to freeze your bank account and tell you that you need to buy gift cards to avoid arrest or to continue accessing your money in your bank account.»
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The most important thing to remember if you don't want to fall victim to a gift card scam is that gift cards are intended for use in gift purchases and NOT for payments.
If someone calling from a government agency or bank says you need to pay to avoid arrest or pay off an unknown debt to maintain access to your bank account, they are definitely a scammer.
